4 ms·
I find this ironic since now days it seems every store has its own credit card. I even have a card from pep boys (and was given a free oil change just to sign u
by edgyquant 5y ago
I find this ironic since now days it seems every store has its own credit card. I even have a card from pep boys (and was given a free oil change just to sign up.)
- ishjoh 5y agoIt's because there are white label credit cards that are extremely easy to setup if you're a business and they're so profitable. Not only does the store get a sale upfront which a customer might not have been able to afford without it, they get additional revenue when folks are slow to repay their bill.
- gowld 5y agoThe store gets money when customer pays the bank interest?
- jasode 5y agoYes, the retailer gets a portion of the interest payment. Example story mentioning it: https://www.nytimes.com/2017/05/11/business/dealbook/retailer-credit-cards-macys-losses.html https://www.nytimes.com/2017/05/11/business/dealbook/retaile... https://archive.md/kuW2K https://archive.md/kuW2K
- morpheuskafka 5y agoDo you know if these first part transactions also bypass Visa/MC and interchange? It seems like they should have it so the affiliated merchant can just send the charges over to the issuer directly and bypass everyone else.
- jasode 5y ago>it seems every store has its own credit card. Fyi, vast majority of those are co-branded cards which means they are underwritten by a bank. Examples: - Amazon VISA card is underwritten by Chase Bank - Costco VISA card is underwritten by Citi Bank If you look closely on the Pep Boys card, you'll see who the bank issuer is. It's different from the old days of mom&pop grocery stores running their own ledger of customer accounts. The grocery store was the actual lender of credit. With co-branded credit cards, it's the bank and not the retailer that's lending money for customers to buy merchandise.
- lotsofpulp 5y agoAnother popular one people do not expect is Apple credit card’s bank is Goldman Sachs.
- kayodelycaon 5y agoApple doesn’t hide they partnered with Goldman Sachs. https://www.apple.com/newsroom/2021/08/apple-card-and-goldman-ranked-highest-in-customer-satisfaction-in-jd-power-study/ https://www.apple.com/newsroom/2021/08/apple-card-and-goldma...
- judge2020 5y agoIt also explicitly shows up in credit reports as "GS BANK". Had to explain that to a few friends that didn't look too closely into how Apple Card worked or the fine print of their credit line.
- brendoelfrendo 5y agoThe physical card even has "Goldman Sachs" laser etched on the back.
- kristjansson 5y agoIt’s pretty prominently branded on the physical card.
- snarf21 5y agoYeah, the have someone else run it and get some of the profit. At the end, Sears and JCPenney didn't make any money selling goods. They only made money on the store credit card.
- ghaff 5y agoAs sibling says they’re mostly co-branded. But there was a period when every retail gas supplier and most major chains actually had their own credit cards. And you often had to, as a young person, figure out who would give you a card so you could build up credit and move up the credit card ladder.